2017 Annual Review in summary

2017 Annual Review in summaryThe year in brief (Figures in parentheses pertain to the full-year 2016):

  • Operating profit for the Länsförsäkringar Alliance’s non-life insurance operations increased to SEK 7,207 M (4,626). Bonuses and discounts increased to SEK 1,696 M (1,202). Premiums earned after ceded reinsurance rose to SEK 25,504 M (24,073).
  • The technical result for the Länsförsäkringar Alliance’s non-life insurance operations increased to SEK 2,538 M (1,813). The combined ratio improved to 92% (95).
  • Investment income for the Länsförsäkringar Alliance increased to SEK 6,993 M (5,009).
  • Operating profit for the Länsförsäkringar AB Group increased to SEK 2,825 M (2,286). The return on equity amounted to 11% (10).
  • Operating profit for Länsförsäkringar AB’s non-life insurance operations increased to SEK 1,028 M (644). The combined ratio improved to 88% (92).
  • Operating profit for the Bank Group increased to SEK 1,599 M (1,467). Net interest income strengthened to SEK 3,996 M (3,464).
  • Operating profit for Länsförsäkringar Fondliv increased to SEK 600 M (512). Premium income rose to SEK 9,133 M (8,637). Commission income increased to SEK 1,583 M (1,412).
  • The Board of Länsförsäkringar AB proposes a dividend of SEK 300 M to the owners.
  • Profit for Länsförsäkringar Liv amounted to SEK 2,363 M (2,682). Solvency ratio rose to 207% (195).

Comments from Sören Westin, President and CEO of Länsförsäkringar AB, The Länsförsäkringar Alliance´s jointly owned company:
The Länsförsäkringar Alliance can summarise very strong earnings for 2017. Operating profit for the non-life insurance operations increased to SEK 7.2 billion, with strong investment income of SEK 7.0 billion. The technical result also strengthened, with growth in premiums of 6% and a combined ratio of 92%. Based on these healthy earnings, the regional insurance companies will pay back at least SEK 1.4 billion in bonuses to customers.

The Länsförsäkringar AB Group also reports strong earnings for 2017 with an operating profit of SEK 2.8 billion. The combined ratio for Länsförsäkringar AB’s non-life insurance operations improved to 88%. Agria is continuing to grow and in 2018 France will become the fifth country Agria will expand to outside Sweden. Operating profit for the banking operations increased 9% to SEK 1.6 billion due to a continuously rising customer inflow. The unit-linked insurance operations also benefited from a positive net inflow and healthy value growth trend, which resulted in managed assets increasing 12% to SEK 128 billion. Since the Länsförsäkringar AB Group’s capital situation has strengthened in recent years, the Board of Länsförsäkringar AB proposes a dividend of SEK 300 M to the owners.

The strong earnings reflect the key to Länsförsäkringar’s success – the 23 regional insurance companies’ local presence and engagement, together with the economies of scale that the jointly owned Länsförsäkringar AB represents. In 2017, Länsförsäkringar once again topped the Swedish Quality Index’s customer satisfaction survey in banking, private non-life insurance and real-estate brokerage, won the Swedish Brand Award and the Red Dot Award for its app. The Länsförsäkringar Global Hållbar sustainability fund was given the green light by Söderberg & Partners and placed in its list of top ten Swedish sustainable funds.

The Länsförsäkringar Alliance is not a Group in the legal or practical sense of the term, but an alliance between 23 independent regional insurance companies that jointly own Länsförsäkringar AB. Earnings from the Länsförsäkringar Alliance’s non-life insurance operations consist of the total earnings of the 23 regional insurance companies and the Länsförsäkringar AB Group, excluding Länsförsäkringar Fondliv and the Länsförsäkringar Bank Group.
    
    

For further information, please contact:
Sören Westin, President and CEO Länsförsäkringar AB
soren.westin@lansforsakringar.se, 08-588 414 25, 073-964 14 25

Malin Rylander Leijon, CFO Länsförsäkringar AB
malin.rylander-leijon@lansforsakringar.se, 08-588 408 64, 073-964 08 64

Anna Glennmar, Investor Relations Länsförsäkringar AB
anna.glennmar@lansforsakringar.se, 08-588 417 42, 072-141 44 08

Fanny Wallér, Director of Corporate Communications Länsförsäkringar AB
fanny.waller@lansforsakringar.se, 08-588 414 69, 070-692 77 79
   

The Länsförsäkringar Alliance comprises 23 local and customer-owned regional insurance companies and the jointly owned Länsförsäkringar AB. Customers are provided with a complete offering of banking, insurance and real-estate brokerage services through their local, regional insurance companies. We offer animal and crop insurance through Agria Djurförsäkring, total solutions for reliable mortgage transactions are offered through Länsförsäkringar Fastighetsförmedling, and financial services such as leasing, repayments and loans through Wasa Kredit.

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About Us

Länsförsäkringar is Sweden’s only customer-owned and locally established banking and insurance group. The customers in each of the counties in the country own their local and independent regional insurance company. The 23 regional bank and insurance companies cooperate in the jointly owned Länsförsäkringar AB, which conducts development and provides services within banking, life assurance, non-life insurance and animal insurance. Länsförsäkringar offers a broad range of insurance and banking services for individuals, companies and farming. All companies within the Länsförsäkringar Alliance are environmentally certified in accordance with ISO 14001.

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